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Kowboy
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2,063 Posts
I got a letter from the IRS stating I owed them $35,000.00 immediately. The guy I sold my business to did $70,000.00 worth of work for Lowe's, and Lowe's mistakenly 1099'd me. My lawyer said to hire a tax lawyer. Instead, I wrote to the IRS, and explained and documented what happened. Several months later I got a 3-page letter that said "Nevermind."
 

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Maker of Fine Sawdust
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48,769 Posts
"mistakenly" I'm sure the guy who bought the business from you had nothing to do with that.
 

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GC
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320 Posts
What I'm trying to ask is, when I make a invoice to customer and that customer uses it as a deduction, will that invoice ever comeback to haunt me if didn't claim on my taxes?
Probably not. The IRS doesn't get copies of your invoices. If your client was audited they might look at it to verify amounts. The IRS doesn't know who you've billed or how much that person paid you. That only comes up if you receive a 1099. If you ever come under real scrutiny, they'll grab your bank statements, that's where all the information is.
 
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